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Fonterra To Sell Horley's Drinks For $7.8m


Flex

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28/09/2006

NZPA

Fonterra has entered into a conditional agreement to sell the company that markets Horley's drinks for $7.8 million.

Naturalac Nutrition Limited (NNL) would be sold to Etika (NZ) Ltd, a subsidiary of Etika International Holdings Ltd which listed in Singapore, with operations based in Malaysia.

The transaction is conditional on the approval of Etika shareholders.

NNL, which markets branded sports nutrition and weight management products under the Horleys brand name, was acquired by Fonterra through foundation company Kiwi Co-operative Dairies Ltd.

Fonterra said NNL did not fit well with its new portfolio.

http://xtramsn.co.nz/businessandmoney/0 ... 7950ea6164

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Ooh, so that deal's finally gone through? I asked Horleys about it just the other day when I phoned to ask if they wanted to continue supporting us (they do!). They said a deal was close, but they wouldn't give me any more detail than that. So thanks, Flex - thats very interesting.

Here's another article with some more info:

Agreement on sale of Naturalac Nutrition Limited

http://www.scoop.co.nz/stories/BU0609/S00455.htm

Wednesday, 27 September 2006, 4:34 pm

Press Release: Fonterra

Media Release

27 September 2006

Fonterra and Etika (NZ) Ltd reach agreement on sale of Naturalac Nutrition Limited (Horleys)

Fonterra confirmed today that it has entered into a conditional agreement to sell Naturalac Nutrition Limited (NNL) to Etika (NZ) Ltd for $7.8 million.

Etika (NZ) Ltd is a newly incorporated subsidiary of Etika International Holdings Ltd listed in Singapore, with operations based in Malaysia.

The transaction is conditional on the approval of the shareholders of Etika International Holdings Ltd, which is listed on the Stock Exchange of Singapore.

NNL, a marketer of branded sports nutrition and weight management products that trades under the Horleys brand name, was acquired by Fonterra through its legacy company Kiwi Co-operative Dairies Limited.

Fonterra Brands Managing Director Sanjay Khosla said Fonterra decided to sell NNL because it did not fit well with its ‘Winning through Brands!’ strategy.

“We are building a more focused portfolio and believe that there are better investment opportunities to create long term value for our shareholders”.

Mr Khosla said Etika is well placed to build on NNL’s success and international growth.

The sale is conditional upon Etika Shareholder approval and meeting Singapore Stock Exchange documentation.

ENDS

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